Summary
Duke Energy Corporation (DUK) has filed an 8-K report detailing a material definitive agreement for the sale of a 75% ownership interest in a gas-fired electric power plant located in Vermillion County, Indiana. The transaction involves Duke Energy Vermillion II, LLC, an indirect subsidiary of Duke Energy Ohio, Inc., selling its stake to Duke Energy Indiana, Inc. and Wabash Valley Power Association, Inc. (WVPA). The total purchase price is $81.6 million, with Duke Energy Indiana contributing $68 million and WVPA contributing $13.6 million. Upon closing, Duke Energy Indiana will hold a 62.5% interest, and WVPA will increase its stake to 37.5%. The company anticipates an immaterial accounting loss from this transaction. Key conditions for closing include satisfactory approvals from the Federal Energy Regulatory Commission (FERC) and the Indiana Utility Regulatory Commission (IURC), with an expected closing in the first quarter of 2012. This divestiture is part of Duke Energy's ongoing portfolio management and strategic adjustments.
Key Highlights
- 1Duke Energy announced the sale of its 75% interest in a gas-fired power plant in Vermillion County, Indiana.
- 2The transaction involves Duke Energy Indiana and Wabash Valley Power Association, Inc. (WVPA) as purchasers.
- 3The total purchase price for the 75% stake is $81.6 million.
- 4Duke Energy Indiana will assume a 62.5% ownership interest post-transaction.
- 5The company expects an immaterial accounting loss from this sale.
- 6Regulatory approvals from FERC and IURC are required for the transaction to close.
- 7The expected closing date for the transaction is the first quarter of 2012.